Need help with part B. (Photo at the end)

dels een recorded in the Gradebook Sun, Mar 22, 2020, 3:47:46 PM (America/Los Angeles -07:00) 1.63/2.5 Question 1 View Policies Show Attempt History Current Attempt in Progress Booth Company had sales in 2020 of $1,695,000 on 67,800 units. Variable costs totaled $1,017,000 and fixed costs totaled $452.000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.00). However, to process the new raw material, fixed operating costs will increase by $127.000. Management feels that two-thirds of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 4% Increase in the number of units sold. Your answer is correct. Prepare a projected CVP Income statement for 2020 assuming the changes have not been made. Booth Company CVP Income Statement MacBook Pro Q Search or type URL Your answer is correct. Prepare a projected CVP Income statement for 2020 assuming the changes have not been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales 1,695,000 Variable Costs 1,017,000 678000 Contribution Margin Less :: Fixed Costs Net Income/(Loss) 452,000 : 226,000 e Textbook and Media Assistance Used e Textbook Attempts: 1 of 5 used (22) MacBook Pro (a2) Your answer is correct. Prepare a projected CVP Income statement for 2020 assuming that changes are made as described. Booth Company CVP Income Statement For the Year Ended December 31, 2020 . Sales 1621776 Variable Costs : 846144 i : 775632 Contribution Margin Less t : Ford Costs Net Income/loss) 5790001 196632 e Textbook and Media Attempts: 1 of 5 used (0) Your answer is partially correct. Your answer is partially correct. Before Booth Company had the chance to implement usage of the new raw material, new industry specifications were announced and result in the following changes for the Booth Company. Variable costs will increase by 15% per unit and fixed costs will increase by $53,000. Management feels that a $3 per unit price increase is needed to accommodate the cost increases. However, this will result in a 10% decrease in units sold. Prepare a CVP income statement assuming these changes have been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales 1708560 Variable Costs 842076 683424 Contribution Margin Less & Fixed Costs Net Income/Loss) 452,000 . 231424 Assistance Used e Textbook and Media e Textbook Attempts: 1 of 5 used Submit Answer Save for Later Last saved 1 second ago. MacBook Pro